Autonomous vehicle technology specialist Pony AI (PONY 9.19%) galloped well higher on the stock exchange Monday. Much of this had to with an initiation of coverage by an analyst, which helped accelerate the company's share price by more than 9% that trading session. This easily outpaced that 1.6% rise of the S&P 500 (^GSPC 1.56%) on the day.
Launched with a confident buy recommendation
Monday morning, Johnson Wan of Jefferies formally launched his tracking of Pony AI with a buy recommendation. Wan set his price target for the shares at $32.80 apiece, well up from its recent $22.19 closing price.
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The analyst's move comes amid what he considers to be a transformational moment for China, according to reports.
Wan wrote in his research report that the total addressable transportation market in the country will hit 52 billion yuan ($7.3 billion) by 2030. He singled out Pony AI for being particularly adept at navigating the regulatory landscape of its business and containing costs, among other positives.
Potentially significant acceleration
Jefferies wasn't the only American bank taking notice of recent developments with Pony AI. On Friday, Citigroup flagged the stock as being a subject for its 30-day upside catalyst watch. The reasoning behind this move weren't immediately apparent.
